The Privy Council has this morning given judgment in Investec Trust (Guernsey) Ltd v. Glenalla Properties Ltd  UKPC 7. The decision can be read on BAILII at http://www.bailii.org/uk/cases/UKPC/2018/7.html.
Some of the points arising:
- TJL art. 32 (limitation on liability of trustee to third parties) operates via the trustee’s right of indemnity; it does not give a direct right of recourse to the trust fund.
- Creditors’ rights depend on the proper law of the trust.
- Trustees are entitled to an indemnity for liabilities reasonably incurred under TJL art. 26(2) without inquiry whether the trustee was later unreasonable in allowing them to persist.
- Neither TJL art. 32 nor the equivalent in Guernsey, TGL s. 42, is apt to apply to a liability for costs.
There are a good many other points discussed.
Nicholas Le Poidevin, Q.C.
New Square Chambers